8-K

FLUSHING FINANCIAL CORP (FFIC)

8-K 2022-10-26 For: 2022-10-25
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Added on April 09, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 25, 2022

FLUSHING FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

001-33013

(Commission File Number)

Delaware

(State or Other Jurisdiction of Incorporation)

11-3209278

(I.R.S. Employer Identification No.)

220 RXR Plaza , Uniondale , NY **** 11556

(Address of principal executive offices)

( 718 ) 961-5400

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.01 par value FFIC The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01. Regulation FD Disclosure.

On October 25, 2022, Flushing Financial Corp. (the “Company”) made available to investors, and to post on this website, the earnings presentation for the 2022 third quarter earnings, the presentation attached hereto as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

Exhibit 99.1. Presentation dated October 26, 2022.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

us
FLUSHING FINANCIAL CORPORATION
Date: October 25, 2022 By: /s/ SUSAN K. CULLEN
Susan K. Cullen
Senior Executive Vice President and Chief Financial Officer

Exhibit 99.1

3Q22<br>Earnings Conference Call<br>October 26,<br>2022
Safe Harbor Statement<br>2<br>“Safe<br>Harbor”<br>Statement<br>under<br>the<br>Private<br>Securities<br>Litigation<br>Reform<br>Act<br>of<br>1995<br>:<br>Statements<br>in<br>this<br>Presentation<br>relating<br>to<br>plans,<br>strategies,<br>economic<br>performance<br>and<br>trends,<br>projections<br>of<br>results<br>of<br>specific<br>activities<br>or<br>investments<br>and<br>other<br>statements<br>that<br>are<br>not<br>descriptions<br>of<br>historical<br>facts<br>may<br>be<br>forward<br>-<br>looking<br>statements<br>within<br>the<br>meaning<br>of<br>the<br>Private<br>Securities<br>Litigation<br>Reform<br>Act<br>of<br>1995<br>,<br>Section<br>27<br>A<br>of<br>the<br>Securities<br>Act<br>of<br>1933<br>and<br>Section<br>21<br>E<br>of<br>the<br>Securities<br>Exchange<br>Act<br>of<br>1934<br>..<br>Forward<br>-<br>looking<br>information<br>is<br>inherently<br>subject<br>to<br>risks<br>and<br>uncertainties,<br>and<br>actual<br>results<br>could<br>differ<br>materially<br>from<br>those<br>currently<br>anticipated<br>due<br>to<br>a<br>number<br>of<br>factors,<br>which<br>include,<br>but<br>are<br>not<br>limited<br>to,<br>risk<br>factors<br>discussed<br>in<br>the<br>Company’s<br>Annual<br>Report<br>on<br>Form<br>10<br>-<br>K<br>for<br>the<br>fiscal<br>year<br>ended<br>December<br>31<br>,<br>2021<br>and<br>in<br>other<br>documents<br>filed<br>by<br>the<br>Company<br>with<br>the<br>Securities<br>and<br>Exchange<br>Commission<br>from<br>time<br>to<br>time<br>..<br>Forward<br>-<br>looking<br>statements<br>may<br>be<br>identified<br>by<br>terms<br>such<br>as<br>“may”,<br>“will”,<br>“should”,<br>“could”,<br>“expects”,<br>“plans”,<br>“intends”,<br>“anticipates”,<br>“believes”,<br>“estimates”,<br>“predicts”,<br>“forecasts”,<br>“goals”,<br>“potential”<br>or<br>“continue”<br>or<br>similar<br>terms<br>or<br>the<br>negative<br>of<br>these<br>terms<br>..<br>Although<br>we<br>believe<br>that<br>the<br>expectations<br>reflected<br>in<br>the<br>forward<br>-<br>looking<br>statements<br>are<br>reasonable,<br>we<br>cannot<br>guarantee<br>future<br>results,<br>levels<br>of<br>activity,<br>performance<br>or<br>achievements<br>..<br>The<br>Company<br>has<br>no<br>obligation<br>to<br>update<br>these<br>forward<br>-<br>looking<br>statements<br>..
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3<br>4<br>1<br>2<br>Improve<br>and Grow Funding Mix<br>Generate Appropriately Priced Loan Growth<br><br>Average noninterest bearing deposits increased 12.5%<br>YoY<br><br>Core deposits are 83.1% of average deposits and<br>mortgage escrow<br><br>Core deposit yields increased 47 bps QoQ to 0.76%;<br>Deposit beta of 29.9% so far this cycle<br><br>Loan closings up 90.1% YoY<br><br>Net loans<br>, excluding PPP,<br>increased 6.8<br>% YoY<br><br>Loan<br>pipeline<br>of $309.1MM<br><br>Loan yield increased 23 bps QoQ; Core loan yield<br>expanded 20 bps QoQ<br>Manage Asset Quality<br>Invest in the Future<br><br>NPAs stable at 58 bps of assets<br><br>LTV on NPAs is 50.9%<br><br>The total real estate portfolio has an average LTV of<br><37%<br><br>Weighted average debt service coverage ratios of 1.8x for<br>the multifamily and commercial real estate portfolios<br><br>Added 46 people from merged/merging institutions since<br>March 31, 2021; 20 are revenue producers<br><br>Digital users and engagement continues to expand<br><br>Year to date, originated approximately $16MM of loan<br>commitments on the digital platform<br>3Q22<br>GAAP EPS $<br>0.76<br>and<br>Core<br>1<br>EPS of $<br>0.62<br>3<br>GAAP ROAA and ROAE<br>1.11%<br>and<br>13.91%;<br>Core<br>1<br>ROAA and ROAE<br>0.90%<br>and<br>11.24% in 3Q22<br>1<br>See Reconciliation of GAAP Earnings and Core Earnings in Appendix
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4<br>Well<br>-<br>positioned to Benefit from Industry Merger Disruption<br>•<br>10 bank mergers<br>have been announced or closed involving Long Island area banks<br>2<br>•<br>Out of the $<br>363B<br>of total industry deposits<br>in Nassau, Queens, Kings, and Suffolk Counties, $<br>85B<br>or<br>23%<br>involve a merger participant<br>3<br>•<br>93% of FFIC’s deposits<br>are in the Long Island market, including Brooklyn and Queens<br>Flushing Financial (FFIC)<br>1<br>M&T Bank (MTB)/ People’s United Financial<br>(PBCT)<br>(Closed April 1, 2022)<br>Webster Financial (WBS)/ Sterling Bancorp<br>(STL)<br>(Closed Feb 1, 2022)<br>Citizens Financial Group (CFG)/<br>HSBC<br>(Closed Feb 18, 2022)<br>/<br>Investors Bancorp (ISBC)<br>(Closed April 6, 2022)<br>New York Community Bancorp (NYCB)/<br>Flagstar Bancorp (FBC)<br>(Pending)<br>Valley National Bancorp (VLY)/<br>The Westchester Bank<br>(Closed Dec 1, 2021)<br>/<br>Bank Leumi USA<br>(Closed April 1, 2022)<br>Dime Community Bancshares (DCOM)<br>(Closed Feb 1, 2021)<br>TD Bank (TD)/First Horizon (FHN)<br>(Pending)<br>OceanFirst (OCFC)/Partners (PTRS)<br>(Pending)<br>Current Pro Forma U.S. Branches<br>1<br>24 FFIC branches shown, for illustrative purposes only; Shirley, NY location not pictured<br>2<br>Includes MTB/PBCT, WBS/STL, CFG/ISBC/HSBC, NYCB/FBC, VLY/The Westchester Bank/Bank Leumi USA, DCOM, TD/FHN, and OCFC/PTRS<br>3<br>Based on most recent (June 30,<br>2022)<br>S&P Global data<br>46<br>people recruited<br>(20<br>Revenue<br>Producers) from<br>Merged Institutions<br>Since March 31,<br>2021
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Strong Loan Closings; Loan Pipeline Declines<br>5<br><br>Closings up<br>–<br>Closings up 90.1% YoY in 3Q22<br>–<br>Loan pull through rates were 79.6%<br>in 3Q22 compared to 75.9% in 2Q22<br>and 56.4% in 3Q21<br><br>Pipeline declines from record<br>levels<br>–<br>Risings rates could slow closings and<br>prepayments<br>–<br>Became more selective in<br>originations focusing on full<br>relationships, rates, and terms<br>Loan<br>Closings Up 90% YoY<br>($MM)<br>$530.7<br>$429.3<br>$663.7<br>$582.6<br>$309.1<br>$243.9<br>$362.7<br>$329.3<br>$503.8<br>$463.7<br> $-<br> $100.0<br> $200.0<br> $300.0<br> $400.0<br> $500.0<br> $600.0<br> $700.0<br>3Q21<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>Loan Pipeline<br>Loan Closings
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Digital Banking<br>Usage Continues to Increase<br>6<br>Technology Enhancements Remain a Priority<br>25%<br>Increase in Monthly Mobile<br>Active Users<br>Sept 2022 YoY<br>~<br>26,500<br>Users with Active Status<br>22%<br>Sept 2022 YoY<br>Growth<br>11%<br>Digital Banking<br>Enrollment<br>Sept 2022 YoY<br>Growth<br>Numerated<br>Small<br>Business<br>Lending<br>Platform<br>$16MM of Commitments<br>in 9M22; Higher Yields vs<br>Portfolio<br>Internet Banks<br>iGObanking and BankPurely<br>national deposit gathering<br>platforms<br>~3% of Average Deposits<br>in September 2022<br>~5,800<br>Zelle<br>®<br>Transactions<br>~$2.0MM<br>Zelle Dollar Transactions<br>in<br>Sept 2022
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<br>Signed Lease for Brooklyn Branch Expanding<br>Asian Banking Footprint<br><br>Successfully Issued $65.0MM of Subordinated<br>Notes<br><br>Provides the Bank with regulatory capital flexibility;<br>lowers the CRE concentration ratio<br><br>Attractive funding as new issue coupons are higher<br><br>Sponsored and Participated in Flushing and<br>Port Jefferson Dragon Boat Race Festivals<br><br>Proud to support these community and cultural events<br><br>Race teams performed well versus larger bank competition<br><br>Sponsored Harvest Moon Reception<br><br>Celebration of the Mid<br>-<br>Autumn Festival for the Asian<br>Banking customers; over 130 attendees<br><br>Contactless Enabled ATM Debit Card Launched<br><br>Enables contactless transactions; rollout began in<br>September 2022<br>7<br>Key Events During 3Q22
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Increasing CDs to Lengthen Liability Duration<br>8<br>Average Core Deposits are 83% of Average Deposits<br>1<br>in 3Q22<br>Total Average Deposits<br>1<br>($MM)<br>1<br>Includes mortgage escrow deposits<br><br>Average<br>noninterest<br>bearing<br>deposits up<br>12.5%<br>YoY<br><br>Noninterest<br>bearing deposits are<br>16.7%<br>of<br>average deposits<br>1<br>, up from<br>14.6%<br>a year ago<br><br>3<br>Q22<br>checking account openings up<br>26.4%<br>YoY<br><br>Increased CDs to lengthen liability duration<br>Average<br>Noninterest<br>Deposits<br>($MM)<br>14.6%<br>15.1%<br>15.6%<br>16.2%<br>16.7%<br>32.9%<br>32.8%<br>31.8%<br>32.4%<br>28.8%<br>2.4%<br>2.4%<br>2.4%<br>2.4%<br>2.5%<br>32.8%<br>33.7%<br>35.2%<br>34.8%<br>34.0%<br>16.2%<br>14.7%<br>13.9%<br>12.7%<br>16.9%<br>1.1%<br>1.3%<br>1.1%<br>1.5%<br>1.1%<br>$6,409<br>$6,459<br>$6,410<br>$6,441<br>$6,277<br>0<br>1000<br>2000<br>3000<br>4000<br>5000<br>6000<br>7000<br>3Q21<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>Noninterest Bearing<br>NOW Accounts<br>Savings<br>Money Market<br>CDs<br>Mortgage Escrow<br>$933.4<br>$976.8<br>$1,001.6<br>$1,044.6<br>$1,050.3<br>-100<br>100<br>300<br>500<br>700<br>900<br>1100<br>1300<br>3Q21<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>Deposit Costs<br>0.29%<br>0.25%<br>0.21%<br>0.29%<br>0.76%
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Deposit Rates Rise But At Slower Pace Than Fed Moves<br>9<br>Year to Date, Weighted Average Interest Bearing Deposit Beta of 29.9%<br>0.00%<br>0.50%<br>1.00%<br>1.50%<br>2.00%<br>2.50%<br>3.00%<br>3Q17<br>4Q17<br>1Q18<br>2Q18<br>3Q18<br>4Q18<br>1Q19<br>2Q19<br>3Q19<br>4Q19<br>1Q20<br>2Q20<br>3Q20<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>Average Fed Funds<br>Interest Bearing Deposit Costs<br>Overall Interest Bearing Deposit Beta<br>-<br>Previous Cycle:<br>3Q15<br>-<br>1Q19 the interest bearing deposit beta was 42.5% as average Fed Funds increased 226 bps<br>-<br>Current Cycle:<br>4Q21<br>-<br>3Q22, the interest bearing deposit beta is 29.9% as average Fed Funds increased 211 bps
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37.7%<br>37.9%<br>38.0%<br>37.5%<br>37.5%<br>26.3%<br>26.8%<br>26.7%<br>27.6%<br>27.6%<br>1.1%<br>0.9%<br>1.0%<br>1.1%<br>0.9%<br>13.1%<br>12.8%<br>12.4%<br>12.0%<br>11.5%<br>21.8%<br>21.6%<br>21.9%<br>21.8%<br>22.5%<br>$6,627<br>$6,634<br>$6,601<br>$6,752<br>$6,948<br> -<br> 1,000<br> 2,000<br> 3,000<br> 4,000<br> 5,000<br> 6,000<br> 7,000<br> 8,000<br>3Q21<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>Multifamily<br>Commercial Real Estate<br>Construction<br>1-4 Family<br>Business Banking<br>Loan Continue to Increase; Yields Improve YoY and QoQ<br>10<br>Core Loan Yields<br>4.09%<br>4.05%<br>4.04%<br>4.15%<br>4.35%<br>Loan Composition<br>Period End Loans<br>($MM)<br><br>Net<br>loans, excluding PPP,<br>increased 6.9% YoY<br><br>Loan<br>pipeline totaled<br>$309.1MM<br>at<br>September 30, 2022; Pipeline yield increases<br>117 bps QoQ<br><br>Core loan yields improve 20 bps<br>QoQ;<br>prepayment penalty income totaled $1.3MM in<br>3Q22 vs $2.3MM in 2Q22 and $1.8MM in 3Q21<br><br>Spread between closings and satisfaction<br>yields, excluding PPP, changed in 3Q22 largely<br>due to mix<br>See Appendix for definitions of Core<br>Loan<br>Yields<br>Closings vs Satisfaction Yields Excluding PPP<br>3.64%<br>3.51%<br>3.44%<br>3.92%<br>4.60%<br>4.04%<br>3.90%<br>3.76%<br>3.64%<br>4.74%<br>(0.40)%<br>(0.39)%<br>(0.32)%<br>0.28 %<br>(0.14)%<br>(0.60)%<br>(0.40)%<br>(0.20)%<br>0.00 %<br>0.20 %<br>0.40 %<br>0.60 %<br>0.80 %<br>1.00 %<br>0.00%<br>0.50%<br>1.00%<br>1.50%<br>2.00%<br>2.50%<br>3.00%<br>3.50%<br>4.00%<br>4.50%<br>5.00%<br>3Q21<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>Closings Yield Ex PPP<br>Satisfaction Yield Ex PPP<br>Spread
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<br>Floating rate loans<br>include<br>any loans<br>(including swaps) tied<br>to an index that reprices within 90 days<br><br>Through 2024, loans to<br>reprice<br>~200<br>bps higher<br>assuming<br>index values as of<br>September 30<br>,<br>2022<br><br>~15<br>%<br>reprice with every Fed move and an additional 10<br>-<br>15% of loans reprice annually<br>42% of the Loan Portfolio to Reprice Through 2024<br>11<br>Loan Repricing<br>($MM)<br>$1,026<br>$994<br>$785<br>$126<br>5.26%<br>4.96%<br>4.27%<br>4.33%<br>5.64%<br>6.44%<br>6.34%<br>6.33%<br> -<br> 200<br> 400<br> 600<br> 800<br> 1,000<br> 1,200<br>Floating<br>2022<br>2023<br>2024<br>Adjustable Loan Repricing<br>Maturing Fixed Rate<br>Total Loan Repicing<br>Current Rate<br>Repricing Rate<br>1<br>As of October 21, 2022<br>Fed fund futures<br>1<br>expect<br>another ~125 bps of rate<br>increases that are not<br>captured in this analysis,<br>but we expect to capture a<br>portion, if not all, of the rate<br>move
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GAAP<br>NIM FTE<br>3.34%<br>3.29%<br>3.36%<br>3.35%<br>3.07%<br>Core Loan Yields Increase 20 bps; NIM Compresses<br>12<br>$62.2<br>$61.2<br>$62.7<br>$64.6<br>$60.5<br>3.27%<br>3.21%<br>3.31%<br>3.33%<br>3.03%<br>4.09%<br>4.05%<br>4.04%<br>4.15%<br>4.35%<br>0.30%<br>0.25%<br>0.22%<br>0.29%<br>0.76%<br>-0.25%<br>0.75%<br>1.75%<br>2.75%<br>3.75%<br>4.75%<br>5.75%<br>$10.0<br>$20.0<br>$30.0<br>$40.0<br>$50.0<br>$60.0<br>$70.0<br>3Q21<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>Core NII FTE<br>Core NIM FTE<br>Core Loan Yields<br>Core Deposit Yield<br>($MM)<br>See Appendix for definitions of Core<br>NII FTE, Core NIM, and Core Loan Yields<br>20 bps<br>QoQ<br>Increase<br>47 bps<br>QoQ<br>Increase
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<br>Over two decades and multiple credit cycles, Flushing Financial has a history of better than industry credit quality<br><br>Average LTVs on the Real Estate portfolio is <<br>37%<br>4<br>–<br>Only<br>$23.1MM<br>of real estate loans (<br>0.33%<br>of gross loans) with an LTV of 75% or more<br>4<br>Net Charge<br>-<br>offs Significantly Better Than the Industry; Strong DSR<br>13<br>NCOs / Average Loans<br>0.01%<br>0.25%<br>-0.2%<br>0.3%<br>0.8%<br>1.3%<br>1.8%<br>2.3%<br>2.8%<br>3.3%<br>2001<br>2003<br>2005<br>2007<br>2009<br>2011<br>2013<br>2015<br>2017<br>2019<br>2021<br>FFIC<br>Industry<br>2 basis<br>points of<br>Net<br>Charge<br>-<br>offs<br>to<br>Average Loans<br>in<br>3Q22<br>9M22<br>Weighted average debt service ratios (DSR) for Multifamily and<br>NOO CRE portfolios at<br>~1.8x<br>1<br>-<br>200 bps shock increase in rates produces a weighted average DSR of >1.25x<br>2<br>-<br>10% increase in operating expense yields a weighted average DSR of >1.50x<br>2<br>-<br>200 bps shock increase in rates and 10% increase in operating expenses<br>results in a weighted average DSR >1.15<br>2<br>3<br>1<br>Based on most recent Annual Loan Review<br>2<br>Based on a sample of<br>loans<br>comprising 89% of loans adjusting from (2022<br>-<br>2024) with no increase in<br>rents or total income<br>3<br>“Industry” includes FDIC insured institutions from “FDIC Statistics At A Glance”<br>through<br>December 31, 2021<br>4<br>Based on appraised value at origination
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14<br>Continued Strong Credit Quality<br>NPAs / Assets<br>Criticized and Classified Loans / Gross Loans<br>ACL /<br>Gross Loans &<br>ACL /<br>NPLs<br>ACL by Loan Segment<br>(3Q22)<br>$2,608<br>$1,914<br>$561<br>$233<br>$7<br>$64<br>$28<br>$1,533<br>0.37%<br>0.44%<br>0.35%<br>0.34%<br>0.00%<br>0.40%<br>7.44%<br>1.18%<br>-70.00%<br>-60.00%<br>-50.00%<br>-40.00%<br>-30.00%<br>-20.00%<br>-10.00%<br>0.00%<br>10.00%<br>Multifamily<br>Residential<br>Commercial<br>Real Estate<br>1-4 Family -<br>Mixed Use<br>1-4 Family -<br>Residential<br>Co-operative<br>Apartments<br>Construction<br>Small<br>Business<br>Administration<br>Commercial<br>Business and<br>Other<br>Loan Balance<br>ACLs / Loans<br>179.9%<br>248.7%<br>266.1%<br>141.1%<br>142.3%<br>0.55%<br>0.56%<br>0.57%<br>0.58%<br>0.59%<br>0%<br>0%<br>0%<br>1%<br>1%<br>1%<br>1%<br>1%<br>2%<br>2%<br>2%<br>0%<br>50%<br>100%<br>150%<br>200%<br>250%<br>300%<br>3Q21<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>ACLs / NPLs<br>ACLs / Loans<br>0.25%<br>0.19%<br>0.17%<br>0.59%<br>0.58%<br>0.47%<br>0.41%<br>0.39%<br>0.36%<br>0.00%<br>0.10%<br>0.20%<br>0.30%<br>0.40%<br>0.50%<br>0.60%<br>0.70%<br>3Q21<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>FFIC<br>Peer Median*<br>1.04%<br>0.87%<br>0.90%<br>0.85%<br>0.89%<br>4.16%<br>3.36%<br>3.27%<br>2.84%<br>0.00%<br>1.00%<br>2.00%<br>3.00%<br>4.00%<br>5.00%<br>6.00%<br>3Q21<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>FFIC<br>Peer Median*<br>50.9%<br>LTV on<br>3Q22<br>NPAs<br>* Peer data through 2Q22; Peers include<br>: BKU,<br>DCOM, FLIC, HNVR, KRNY, NFBK,<br>NYCB<br>,<br>PFS, and<br>VLY
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Book Value and Tangible Book Value Per Share Grow in 3Q22<br>15<br>131,174 Shares<br>Repurchased in<br>3Q22; 40% of Earnings Returned in 3Q22<br>3.2%<br>YoY Book<br>Value Per Share<br>Growth<br>3.2<br>% YoY Increase<br>in Tangible Book Value Per<br>Share<br>$21.13<br>$21.61<br>$21.61<br>$21.71<br>$21.81<br>8.04%<br>8.22%<br>8.05%<br>7.82%<br>7.62%<br>6.90%<br>7.10%<br>7.30%<br>7.50%<br>7.70%<br>7.90%<br>8.10%<br>8.30%<br>8.50%<br>8.70%<br> $15.00<br> $16.00<br> $17.00<br> $18.00<br> $19.00<br> $20.00<br> $21.00<br> $22.00<br> $23.00<br>3Q21<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>Tangible Book Value Per Share<br>Tangible Common Equity/Tangible Assets<br>$21.78<br>$22.26<br>$22.26<br>$22.38<br>$22.47<br>10.68%<br>10.86%<br>10.84%<br>10.52%<br>10.49%<br>8.83%<br>8.98%<br>9.05%<br>8.91%<br>8.74%<br>0.00%<br>5.00%<br>10.00%<br>15.00%<br>20.00%<br>25.00%<br>30.00%<br> $17.00<br> $18.00<br> $19.00<br> $20.00<br> $21.00<br> $22.00<br> $23.00<br>3Q21<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>Book Value Per Share<br>CET1 Ratio<br>Leverage Ratio
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16<br><br>Managing through rate increases<br>–<br>Controlling deposit rate increases is key for the net<br>interest income outlook<br>–<br>Net interest income generally rises closer to the<br>base case by Year 3 as cumulative loan repricing<br>exceeds deposits costs<br><br>Opportunistic capital return with strong<br>dividend yield of 4.4%<br>1<br>–<br>Repurchased 131,174 shares in 3Q22 at an average<br>price of $20.47<br>–<br>Balancing additional share repurchases with 8%<br>TCE target<br><br>Maintaining through<br>-<br>the<br>-<br>cycle goals of<br>ROAA ≥1% and ROAE ≥10%<br>–<br>On a core basis, ROAA of 0.90% and ROAE of<br>11.24% in 3Q22<br><br>Benefiting from merger disruption<br>–<br>Since March 31, 2021, added<br>46<br>people from<br>announced/recently closed mergers;<br>20<br>are revenue<br>producing<br><br>Remaining selective with loans<br>–<br>Selective on rates and property type<br>–<br>Expect higher rates to impact closings<br>–<br>Expect prepayment speeds to decline over<br>time<br>–<br>Overall loan growth to be muted<br><br>Well prepared if credit markets weaken<br>–<br>Loan losses consistently below industry levels<br>–<br>Average real estate LTVs <37%<br>–<br>Over 88% of the loan portfolio is real estate secured<br>–<br>Weighted average Debt Service Coverage Ratio of 1.8x for<br>multifamily and NOO CRE<br>Key Messages<br>1<br>Calculated using<br>10/20/22<br>closing price of<br>$19.79
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Appendix<br>17
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Reconciliation of GAAP Earnings and Core Earnings<br>18<br>Non<br>-<br>cash Fair Value Adjustments to GAAP Earnings<br>The<br>variance<br>in<br>GAAP<br>and<br>core<br>earnings<br>is<br>partly<br>driven<br>by<br>the<br>impact<br>of<br>non<br>-<br>cash<br>net<br>gains<br>and<br>losses<br>from<br>fair<br>value<br>adjustments<br>..<br>These<br>fair<br>value<br>adjustments<br>relate<br>primarily<br>to<br>borrowing<br>carried<br>at<br>fair<br>value<br>under<br>the<br>fair<br>value<br>option<br>a<br>nd<br>swaps<br>designated<br>to<br>protect<br>against<br>rising<br>rates<br>..<br>As<br>the<br>swaps<br>get<br>closer<br>to<br>maturity,<br>the<br>volatility<br>in<br>fair<br>value<br>adjustments<br>will<br>dissipate<br>..<br>In<br>a<br>rising<br>interest<br>rate<br>environment<br>or<br>a<br>steepening<br>of<br>the<br>yield<br>curve,<br>the<br>loss<br>position<br>would<br>experience<br>an<br>improvement<br>..<br>In<br>a<br>declining<br>interest<br>rate<br>environment,<br>the<br>movement<br>in<br>the<br>curve<br>exaggerates<br>our<br>mark<br>-<br>to<br>-<br>market<br>loss<br>position<br>..<br>Core<br>Net<br>Income,<br>Core<br>Diluted<br>EPS,<br>Core<br>ROAE,<br>Core<br>ROAA,<br>Pre<br>-<br>provision,<br>Pre<br>-<br>tax<br>Net<br>Revenue,<br>Core<br>Net<br>Interest<br>Income<br>FTE,<br>Core<br>Net<br>Interest<br>Margin<br>FTE<br>,<br>Core<br>Interest<br>Income<br>and<br>Yield<br>on<br>Total<br>Loans<br>,<br>Core<br>Noninterest<br>Income,<br>Core<br>Noninterest<br>Expense<br>and<br>Tangible<br>Book<br>Value<br>per<br>common<br>share<br>are<br>each<br>non<br>-<br>GAAP<br>measures<br>used<br>in<br>this<br>presentation<br>..<br>A<br>reconciliation<br>to<br>the<br>most<br>directly<br>comparable<br>GAAP<br>financial<br>measures<br>appears<br>below<br>in<br>tabular<br>form<br>..<br>The<br>Company<br>believes<br>that<br>these<br>measures<br>are<br>useful<br>for<br>both<br>investors<br>and<br>management<br>to<br>understand<br>the<br>effects<br>of<br>certain<br>interest<br>and<br>noninterest<br>items<br>and<br>provide<br>an<br>alternative<br>view<br>of<br>the<br>Company's<br>performance<br>over<br>time<br>and<br>in<br>comparison<br>to<br>the<br>Company's<br>competitors<br>..<br>These<br>measures<br>should<br>not<br>be<br>viewed<br>as<br>a<br>substitute<br>for<br>net<br>income<br>..<br>The<br>Company<br>believes<br>that<br>tangible<br>book<br>value<br>per<br>common<br>share<br>is<br>useful<br>for<br>both<br>investors<br>and<br>management<br>as<br>these<br>are<br>measures<br>commonly<br>used<br>by<br>financial<br>institutions,<br>regulators<br>and<br>investors<br>to<br>measure<br>the<br>capital<br>adequacy<br>of<br>financial<br>institutions<br>..<br>The<br>Company<br>believes<br>these<br>measures<br>facilitate<br>comparison<br>of<br>the<br>quality<br>and<br>composition<br>of<br>the<br>Company's<br>capital<br>over<br>time<br>and<br>in<br>comparison<br>to<br>its<br>competitors<br>..<br>These<br>measures<br>should<br>not<br>be<br>viewed<br>as<br>a<br>substitute<br>for<br>total<br>shareholders'<br>equity<br>..<br>These<br>non<br>-<br>GAAP<br>measures<br>have<br>inherent<br>limitations,<br>are<br>not<br>required<br>to<br>be<br>uniformly<br>applied<br>and<br>are<br>not<br>audited<br>..<br>They<br>should<br>not<br>be<br>considered<br>in<br>isolation<br>or<br>as<br>a<br>substitute<br>for<br>analysis<br>of<br>results<br>reported<br>under<br>GAAP<br>..<br>These<br>non<br>-<br>GAAP<br>measures<br>may<br>not<br>be<br>comparable<br>to<br>similarly<br>titled<br>measures<br>reported<br>by<br>other<br>companies<br>..
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19<br>1<br>Core diluted earnings per common share may not foot due to rounding<br>2<br>Ratios are calculated on an annualized basis<br>Reconciliation of GAAP to CORE Earnings<br>(Dollars in thousands,<br><br>except per share data)<br>GAAP income before income taxes<br>$<br>32,422<br><br><br>$<br>34,971<br><br><br>$<br>24,640<br><br><br>$<br>22,826<br><br><br>$<br>34,812<br><br><br>$<br>92,033<br><br><br>$<br>86,452<br><br><br>Net (gain) loss from fair value adjustments (Noninterest<br>income (loss))<br><br>(5,626)<br><br><br><br>(2,533)<br><br><br><br>1,809<br><br><br><br>5,140<br><br><br><br>2,289<br><br><br><br>(6,350)<br><br><br><br>7,855<br><br><br>Net (gain) loss on sale of securities (Noninterest income<br>(loss))<br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>10<br><br><br><br>—<br><br><br><br>(113)<br><br><br>Life insurance proceeds (Noninterest income (loss))<br><br>—<br><br><br><br>(1,536)<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>(1,536)<br><br><br><br>—<br><br><br>Net gain on disposition of assets (Noninterest income (loss))<br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>(621)<br><br><br>Net (gain) loss from fair value adjustments on qualifying<br>hedges (Interest and fees on loans)<br><br>(28)<br><br><br><br>60<br><br><br><br>129<br><br><br><br>(1,122)<br><br><br><br>(194)<br><br><br><br>161<br><br><br>(957)<br><br><br>Net amortization of purchase accounting adjustments<br>(Various)<br>(650)<br><br><br>(237)<br><br><br>(924)<br><br><br>(324)<br><br><br>(958)<br><br><br>(1,811)<br><br><br>(2,165)<br><br><br>Merger (benefit) expense (Various)<br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>(17)<br><br><br><br>2,096<br><br><br><br>—<br><br><br><br>2,579<br><br><br>Core income before taxes<br><br>26,118<br><br><br><br>30,725<br><br><br><br>25,654<br><br><br><br>26,503<br><br><br><br>38,055<br><br><br><br>82,497<br><br><br><br>93,030<br><br><br>Provision for income taxes for core income<br><br>7,165<br><br><br><br>9,207<br><br><br><br>6,685<br><br><br><br>5,535<br><br><br><br>10,226<br><br><br><br>23,057<br><br><br><br>25,234<br><br><br>Core net income<br>$<br>18,953<br><br><br>$<br>21,518<br><br><br>$<br>18,969<br><br><br>$<br>20,968<br><br><br>$<br>27,829<br><br><br>$<br>59,440<br><br><br>$<br>67,796<br><br><br>GAAP diluted earnings per common share<br>$<br>0.76<br><br><br>$<br>0.81<br><br><br>$<br>0.58<br><br><br>$<br>0.58<br><br><br>$<br>0.81<br><br><br>$<br>2.15<br><br><br>$<br>2.02<br><br><br>Net (gain) loss from fair value adjustments, net of tax<br><br>(0.13)<br><br><br><br>(0.06)<br><br><br><br>0.04<br><br><br><br>0.13<br><br><br><br>0.05<br><br><br><br>(0.15)<br><br><br>0.18<br><br><br>Net loss on sale of securities, net of tax<br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br>—<br><br><br>Life insurance proceeds<br><br>—<br><br><br><br>(0.05)<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>(0.05)<br><br><br>—<br><br><br>Net gain on disposition of assets, net of tax<br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br>(0.01)<br><br><br>Net (gain) loss from fair value adjustments on qualifying<br>hedges, net of tax<br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>(0.03)<br><br><br><br>—<br><br><br><br>—<br><br><br>(0.02)<br><br><br>Net amortization of purchase accounting adjustments, net of<br>tax<br>(0.02)<br><br><br>(0.01)<br><br><br>(0.02)<br><br><br>(0.01)<br><br><br>(0.02)<br><br><br>(0.04)<br><br><br>(0.05)<br><br><br>Merger (benefit) expense, net of tax<br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>0.05<br><br><br><br>—<br><br><br>0.06<br><br><br>NYS tax change<br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br>(0.02)<br><br><br>Core diluted earnings per common share<br>(1)<br>$<br>0.62<br><br><br>$<br>0.70<br><br><br>$<br>0.61<br><br><br>$<br>0.67<br><br><br>$<br>0.88<br><br><br>$<br>1.92<br><br><br>$<br>2.14<br><br><br>Core net income, as calculated above<br>$<br>18,953<br><br><br>$<br>21,518<br><br><br>$<br>18,969<br><br><br>$<br>20,968<br><br><br>$<br>27,829<br><br><br>$<br>59,440<br><br><br>$<br>67,796<br><br><br>Average assets<br><br>8,442,657<br><br><br><br>8,211,763<br><br><br><br>8,049,470<br><br><br><br>8,090,701<br><br><br><br>8,072,918<br><br><br><br>8,236,070<br><br><br><br>8,161,121<br><br><br>Average equity<br><br>674,282<br><br><br><br>667,456<br><br><br><br>673,012<br><br><br><br>671,474<br><br><br><br>659,288<br><br><br><br>671,588<br><br><br><br>641,354<br><br><br>Core return on average assets<br>(2)<br><br>0.90<br><br><br>%<br><br>1.05<br><br><br>%<br><br>0.94<br><br><br>%<br><br>1.04<br><br><br>%<br><br>1.38<br><br><br>%<br><br>0.96<br><br><br>%<br><br>1.11<br><br><br>%<br>Core return on average equity<br>(2)<br><br>11.24<br><br><br>%<br><br>12.90<br><br><br>%<br><br>11.27<br><br><br>%<br><br>12.49<br><br><br>%<br><br>16.88<br><br><br>%<br><br>11.80<br><br><br>%<br><br>14.09<br><br><br>%<br>For the three months ended<br>For the nine months ended<br>September 30,<br>2022<br>2021<br>September 30,<br>March 31,<br>December 31,<br>2021<br>2021<br>September 30,<br>2022<br>September 30,<br>June 30,<br>2022<br>2022
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20<br>Reconciliation of GAAP Revenue<br>and<br>Pre<br>-<br>provision<br>Pre<br>-<br>tax Net Revenue<br><br><br><br><br><br>(Dollars in thousands)<br><br><br><br><br><br>GAAP Net interest income<br>$<br>61,206<br><br><br>$<br>64,730<br><br><br>$<br>63,479<br><br><br>$<br>62,674<br><br><br>$<br>63,364<br><br><br>$<br>189,415<br><br><br>$<br>185,295<br><br><br>Net (gain) loss from fair value adjustments<br>on qualifying hedges<br>(28)<br><br><br>60<br><br><br>129<br><br><br>(1,122)<br><br><br>(194)<br><br><br>161<br><br><br>(957)<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(775)<br><br><br>(367)<br><br><br>(1,058)<br><br><br>(462)<br><br><br>(1,100)<br><br><br>(2,200)<br><br><br>(2,587)<br><br><br>Core Net interest income<br>$<br>60,403<br><br><br>$<br>64,423<br><br><br>$<br>62,550<br><br><br>$<br>61,090<br><br><br>$<br>62,070<br><br><br>$<br>187,376<br><br><br>$<br>181,751<br><br><br>GAAP Noninterest income (loss)<br>$<br>8,995<br><br><br>$<br>7,353<br><br><br>$<br>1,313<br><br><br>$<br>(280)<br><br><br>$<br>866<br><br><br>$<br>17,661<br><br><br>$<br>3,967<br><br><br>Net (gain) loss from fair value adjustments<br>(5,626)<br><br><br>(2,533)<br><br><br>1,809<br><br><br>5,140<br><br><br>2,289<br><br><br>(6,350)<br><br><br>7,855<br><br><br>Net gain (loss) on sale of securities<br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>10<br><br><br>—<br><br><br>(113)<br><br><br>Life insurance proceeds<br>—<br><br><br>(1,536)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>(1,536)<br><br><br>—<br><br><br>Net gain on sale of assets<br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>(621)<br><br><br>Core Noninterest income<br>$<br>3,369<br><br><br>$<br>3,284<br><br><br>$<br>3,122<br><br><br>$<br>4,860<br><br><br>$<br>3,165<br><br><br>$<br>9,775<br><br><br>$<br>11,088<br><br><br>GAAP Noninterest expense<br>$<br>35,634<br><br><br>$<br>35,522<br><br><br>$<br>38,794<br><br><br>$<br>38,807<br><br><br>$<br>36,345<br><br><br>$<br>109,950<br><br><br>$<br>108,515<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(125)<br><br><br>(130)<br><br><br>(134)<br><br><br>(138)<br><br><br>(142)<br><br><br>(389)<br><br><br>(422)<br><br><br>Merger expense (benefit)<br>—<br><br><br>—<br><br><br>—<br><br><br>17<br><br><br>(2,096)<br><br><br>—<br><br><br>(2,579)<br><br><br>Core Noninterest expense<br>$<br>35,509<br><br><br>$<br>35,392<br><br><br>$<br>38,660<br><br><br>$<br>38,686<br><br><br>$<br>34,107<br><br><br>$<br>109,561<br><br><br>$<br>105,514<br><br><br>Net interest income<br>$<br>61,206<br><br><br>$<br>64,730<br><br><br>$<br>63,479<br><br><br>$<br>62,674<br><br><br>$<br>63,364<br><br><br>$<br>189,415<br><br><br>$<br>185,295<br><br><br>Noninterest income (loss)<br>8,995<br><br><br>7,353<br><br><br>1,313<br><br><br>(280)<br><br><br>866<br><br><br>17,661<br><br><br>3,967<br><br><br>Noninterest expense<br>(35,634)<br><br><br>(35,522)<br><br><br>(38,794)<br><br><br>(38,807)<br><br><br>(36,345)<br><br><br>(109,950)<br><br><br>(108,515)<br><br><br>Pre-provision pre-tax net revenue<br>$<br>34,567<br><br><br>$<br>36,561<br><br><br>$<br>25,998<br><br><br>$<br>23,587<br><br><br>$<br>27,885<br><br><br>$<br>97,126<br><br><br>$<br>80,747<br><br><br>Core:<br>Net interest income<br>$<br>60,403<br><br><br>$<br>64,423<br><br><br>$<br>62,550<br><br><br>$<br>61,090<br><br><br>$<br>62,070<br><br><br>$<br>187,376<br><br><br>$<br>181,751<br><br><br>Noninterest income<br>3,369<br><br><br>3,284<br><br><br>3,122<br><br><br>4,860<br><br><br>3,165<br><br><br>9,775<br><br><br>11,088<br><br><br>Noninterest expense<br>(35,509)<br><br><br>(35,392)<br><br><br>(38,660)<br><br><br>(38,686)<br><br><br>(34,107)<br><br><br>(109,561)<br><br><br>(105,514)<br><br><br>Pre-provision pre-tax net revenue<br>$<br>28,263<br><br><br>$<br>32,315<br><br><br>$<br>27,012<br><br><br>$<br>27,264<br><br><br>$<br>31,128<br><br><br>$<br>87,590<br><br><br>$<br>87,325<br><br><br>Efficiency Ratio<br>55.7<br><br><br>%<br>52.3<br><br><br>%<br>58.9<br><br><br>%<br>58.7<br><br><br>%<br>52.3<br><br><br>%<br>55.6<br><br><br>%<br>54.7<br><br><br>%<br>2021<br>2022<br>2022<br>2022<br>2021<br>2021<br>2022<br>For the three months ended<br>For the nine months ended<br>September 30,<br>June 30,<br>March 31,<br>December 31,<br>September 30,<br>September 30,<br>September 30,
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21<br>1<br>Excludes purchase accounting average balances for all periods presented<br>Reconciliation of GAAP<br>to Core Net Interest Income and NIM<br><br><br>(Dollars in thousands)<br><br>GAAP net interest income<br>$<br>61,206<br><br><br>$<br>64,730<br><br><br>$<br>63,479<br><br><br>$<br>62,674<br><br><br>$<br>63,364<br><br><br>$<br>189,415<br><br><br>$<br>185,295<br><br><br>Net (gain) loss from fair value adjustments on<br>qualifying hedges<br><br>(28)<br><br><br><br>60<br><br><br><br>129<br><br><br><br>(1,122)<br><br><br><br>(194)<br><br><br><br>161<br><br><br><br>(957)<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(775)<br><br><br>(367)<br><br><br>(1,058)<br><br><br>(462)<br><br><br>(1,100)<br><br><br>(2,200)<br><br><br>(2,587)<br><br><br>Tax equivalent adjustment<br>104<br><br><br>131<br><br><br>124<br><br><br>113<br><br><br>113<br><br><br>359<br><br><br>337<br><br><br>Core net interest income FTE<br>$<br>60,507<br><br><br>$<br>64,554<br><br><br>$<br>62,674<br><br><br>$<br>61,203<br><br><br>$<br>62,183<br><br><br>$<br>187,735<br><br><br>$<br>182,088<br><br><br>Total average interest-earning assets<br>(1)<br>$<br>7,984,558<br><br><br>$<br>7,746,640<br><br><br>$<br>7,577,053<br><br><br>$<br>7,634,601<br><br><br>$<br>7,616,332<br><br><br>$<br>7,770,910<br><br><br>$<br>7,697,229<br><br><br>Core net interest margin FTE<br><br>3.03<br><br><br>%<br><br>3.33<br><br><br>%<br><br>3.31<br><br><br>%<br><br>3.21<br><br><br>%<br><br>3.27<br><br><br>%<br><br>3.22<br><br><br>%<br><br>3.15<br><br><br>%<br>GAAP interest income on total loans, net<br>$<br>75,546<br><br><br>$<br>69,192<br><br><br>$<br>67,516<br><br><br>$<br>68,113<br><br><br>$<br>69,198<br><br><br>$<br>212,254<br><br><br>$<br>206,218<br><br><br>Net (gain) loss from fair value adjustments on<br>qualifying hedges<br><br>(28)<br><br><br><br>60<br><br><br><br>129<br><br><br><br>(1,122)<br><br><br><br>(194)<br><br><br><br>161<br><br><br><br>(957)<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(783)<br><br><br>(357)<br><br><br>(1,117)<br><br><br>(535)<br><br><br>(1,126)<br><br><br>(2,256)<br><br><br>(2,478)<br><br><br>Core interest income on total loans, net<br>$<br>74,735<br><br><br>$<br>68,895<br><br><br>$<br>66,528<br><br><br>$<br>66,456<br><br><br>$<br>67,878<br><br><br>$<br>210,159<br><br><br>$<br>202,783<br><br><br>Average total loans, net<br>(1)<br>$<br>6,867,758<br><br><br>$<br>6,647,131<br><br><br>$<br>6,586,253<br><br><br>$<br>6,566,654<br><br><br>$<br>6,642,434<br><br><br>$<br>6,701,413<br><br><br>$<br>6,683,412<br><br><br>Core yield on total loans<br><br>4.35<br><br><br>%<br><br>4.15<br><br><br>%<br><br>4.04<br><br><br>%<br><br>4.05<br><br><br>%<br><br>4.09<br><br><br>%<br><br>4.18<br><br><br>%<br><br>4.05<br><br><br>%<br>For the three months ended<br>September 30,<br>June 30,<br>March 31,<br>December 31,<br>September 30,<br>September 30,<br>September 30,<br>2022<br>2021<br>2022<br>2022<br>2022<br>2021<br>2021<br>For the nine months ended
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22<br>Contact Details<br>Susan K. Cullen<br>SEVP, CFO & Treasurer<br>Phone: (718) 961<br>-<br>5400<br>Email: scullen@flushingbank.com<br>Al Savastano, CFA<br>Director of Investor Relations<br>Phone: (516) 820<br>-<br>1146<br>Email: asavastano@flushingbank.com
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